Does Zynga Inc (NASDAQ:ZNGA) Have A Threat From King?

Posted by Ryan Mandell October 14, 2013 0 Comment 1154 views

Zynga Inc (NASDAQ:ZNGA) is known across the world for the addictive games that it made in the past but consistent profits have always skirted the company. Very recently, there was some speculation that the company’s rival, King will be filing for an Initial Public offering in the United States. Though there is no official disclosure yet, some estimates indicate that the company has been raking in $1M-$3M in revenue every single day which takes its potential valuation upto $5B.

The rival games

The primary reason for this is that King is able to launch addictive and fast games. Users are also more than willing to spend real-money for the upgrades they want. After 10 years of its existence, King had received €34M from Index Ventures and Apax Partners, the private-equity firms, in 2005. Since then, the company has been a very profitable undertaking.

Zynga Inc (NASDAQ:ZNGA) on the other hand has been failing on the innovation front and many users are moving away from its games. It will have to pull up its act and make some truly impressive games that will keep users riveted to them and investors interested in the company.

Friday’s trading

In Friday’s trading, Zynga Inc (NASDAQ:ZNGA) rose by 2.27%. The shares opened at a price of $3.54, which climbed to an intraday high of $3.69 and dropped to a close of $3.61. Approximately 13.99M shares were traded on Friday while an average volume of 24.69 million shares were traded over a period of 30 days. The 52-week low of Zynga Inc (NASDAQ:ZNGA) shares is $2.09 and its 52-week high is $4.03. The company has a market capitalization of $2.90 billion.

About the company

Zynga Inc (NASDAQ:ZNGA) is the company that provides social game services. It is engaged in developing, marketing and operating online social-games as live-services that are played via social networking sites and the net as well as via various mobile-platforms.

About Ryan Mandell

Ryan Mandell is our senior staff writer covering the White House for Political Report, Ryan also coordinates with the main newsroom news items and contributing write-ups on cultural, social and political activities. Ryan holds an undergraduate degree in journalism, a Doctorate in international relations and a Master Degree in mass communications with an emphasis in print journalism. Ryan also covered the International Society of Social Defense congress in Spain in 2007 and taken part in the Global Forum on economic policies

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